Refund to CC with 0 balance?

Brie

born_again said:

la531983 said:

Ive already answered that. Its fine. Its not a payment, its a refund.

In any case the whole "dont ever let a card go into credit or there is hell to pay" is nonsense, Ive held a very small credit balance on a card once. Yes they sent me a reminder every week to spend it up but they certainly didnt "reject" the initial payment, or instantly close the account.

It's not letting it go into credit with a refund.

It is, YOU PUTTING your credit card into a credit, that is the no no.

Barclaycard didn't even notify me that I was £3k in credit.  Only noticed as they sent me a statement which they haven't done for a year when I last used the card.  

la531983

mikrt said:

la531983 said:

born_again said:

la531983 said:

Ive already answered that. Its fine. Its not a payment, its a refund.

In any case the whole "dont ever let a card go into credit or there is hell to pay" is nonsense, Ive held a very small credit balance on a card once. Yes they sent me a reminder every week to spend it up but they certainly didnt "reject" the initial payment, or instantly close the account.

It's not letting it go into credit with a refund.

It is, YOU PUTTING your credit card into a credit, that is the no no.

That was the point I was making, I have in the past put it into credit with a PAYMENT. Nothing happened other than the weekly "Your account is in credit, please spend up etc etc" messages. The world didnt end, nor did the card get closed. 

The way some go off on here in threads on this subject you would think putting a card into credit with a payment would summon the Four Horsemen of the Apocalypse!

I've tried making payments previously into account to put me in credit for upcoming bills, and barclaycard won't allow it from their platform. I guess a bank payment would be different though. 

Indeed. Just make a payment to the sort code and account number and likely ends up on the card, and goes in credit.

The general point I am making though was nothing bad would happen if you did that. Wouldnt suggest it as a regular practice as AML stuff then comes into play if its a huge payment. Was only about £30 mine was in credit by.

Keithy13

Point of interest. I have had a credit balance (from a refund) for around 20 years, I get a statement every month showing £2.66 credit balance. 

DullGreyGuy

born_again said:

mikrt said:

My issue is whether it will allow a refund into a 0 balance 😊.

If/when it refunds won't be a problem 👍

Refunds do not require authorisation. So will go straight onto your account.

Paying money into your credit card account dont require authorisation either but the card company may bounce it when it gets to them... agree with the sentiment but authorisation has nothing to do with it. 

Brie

Keithy13 said:

Point of interest. I have had a credit balance (from a refund) for around 20 years, I get a statement every month showing £2.66 credit balance. 

Wow!  Just think if you had put that in a savings account at 5% it would be worth nearly £9 by now!

CliveOfIndia

mikrt said:

I've tried making payments previously into account to put me in credit for upcoming bills, and barclaycard won't allow it from their platform. I guess a bank payment would be different though. 

To reiterate what has already been said, deliberately putting a card into credit (i.e. by you making a payment) is against the T&Cs of all cards (how strictly they enforce it does vary from lender to lender, and often depends on the amount in question).  But a refund from a merchant is treated differently, and causes no problems whatsoever.

mikrt said:

My problem MAY be that I currently have a 0 balance as I pay off ASAP when a debt is shown on statement.

Why do you do this?  It negates many of the benefits of a credit card (well, I guess you are getting the S75 cover), as well as making life unnecessarily complicated - you may as well just use a debit card.  Just wait for the statement to be generated then pay it off in full.

Nasqueron

mikrt said:

My problem MAY be that I currently have a 0 balance as I pay off ASAP when a debt is shown on statement.

To reiterate what Clive posted - this is not how to use a credit card, it does nothing for your credit history as the card will be reported as zero balance unless you happen to not pay it on the day a statement is generated. Just spend on the card and have a direct debit to pay off in full every month.

With the refund credit - either spend on the card to consume it or ask for it to be sent to your bank

SiliconChip

One important thing that hasn't been mentioned is not to withdraw the positive balance at an ATM, unless you happen to have a card that doesn't charge for cash withdrawals, if you want the money returned ask Barclaycard to transfer it to your bank account.

born_again

DullGreyGuy said:

born_again said:

mikrt said:

My issue is whether it will allow a refund into a 0 balance 😊.

If/when it refunds won't be a problem 👍

Refunds do not require authorisation. So will go straight onto your account.

Paying money into your credit card account dont require authorisation either but the card company may bounce it when it gets to them... agree with the sentiment but authorisation has nothing to do with it. 

As OP's query was about a card payment, that is what I was referring to.👍

MEM62

mikrt said:

My issue is whether it will allow a refund into a 0 balance 😊.

If/when it refunds won't be a problem 👍

I had £1,500 refunded to my Barclaycard with no issues.  I just asked them for the money and they transferred it to my bank account.